The image of Baphomet was originally created in 1854 by occultist Eliphas Levi for his book Dogme et Rituel de la Haute Magie ("Dogmas and Rituals of High Magic"). It reflects a number of principles considered fundamental to occultists, and was influenced by Hermeticism, Kabbalah, and alchemy, among other sources.

The term Baphomet is almost assuredly a corruption of the name Muhammad, the last prophet of Islam. The term gained notoriety during the trials of the Knights Templar in the 14th century, when the Templars were accused of, among other things, worshiping an idol called Baphomet. Many of the accusations against the Templars were clearly false, and so many assume this charge was likewise invented by a king trying to get rid of a rich Order to which he was indebted.

Levi’s illustration has nothing to do with Islam, although tales of the secret knowledge of the Templars might have inspired him to adopt the name of their supposed god.

Levi himself described the meaning of the symbol thusly in Dogme et Rituel:

"The goat on the frontispiece carries the sign of the pentagram on the forehead, with one point at the top, a symbol of light, his two hands forming the sign of hermetism, the one pointing up to the white moon of Chesed, the other pointing down to the black one of Geburah. This sign expresses the perfect harmony of mercy with justice. His one arm is female, the other male like the ones of the androgyn of Khunrath, the attributes of which we had to unite with those of our goat because he is one and the same symbol. The flame of intelligence shining between his horns is the magic light of the universal balance, the image of the soul elevated above matter, as the flame, whilst being tied to matter, shines above it. The beast's head expresses the horror of the sinner, whose materially acting, solely responsible part has to bear the punishment exclusively; because the soul is insensitive according to its nature and can only suffer when it materializes. The rod standing instead of genitals symbolizes eternal life, the body covered with scales the water, the semi-circle above it the atmosphere, the feathers following above the volatile. Humanity is represented by the two breasts and the androgyn arms of this sphinx of the occult sciences."